Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 12

As the price of gasoline goes up, people are willing to drive farther to fill their tank in order to save money. Assume you had been buying gasoline for $2.90 per gallon and that it went up to $2.98 per gallon at the station where you usually go. If you drive an F-150 pickup that gets 18 miles per gallon, what is the round-trip distance you can drive to break even if it will take 20 gallons to fill your tank Use an interest rate of 8% per year.